It is my pleasure to welcome you all to the 2014 Bank Examiners’ Conference, which is taking place here in Golden Tulip Hotel, Lagos. For some participants, this is their first experience with such conference. I expect them and the old timers to seize the opportunity of this Conference to interact and derive maximum benefit from being here. I consider the theme of this year’s Conference: ‘Sustaining a Safe and Sound Financial System through Effective Banking Supervision’ apt given the centrality of banking supervision in ensuring the safety and soundness of the financial system. The Speakers and Discussants have been carefully selected to articulate and stimulate the discourse. I therefore expect the participants to actively discuss at the syndicate and plenary sessions.
Distinguished participants, ladies and gentlemen, as you are all aware, the Corporation is a risk minimising deposit insurer. Besides depositors’ guarantee, the Corporation is actively engaged in bank supervision, distress resolution and liquidation. The on-site and off-site Examiners are daily confronted with the challenge of delivering on the Corporation’s mandate of bank supervision using the best practice. Therefore, the primary objective of this Conference is to update the Examiners’ knowledge and skills on contemporary supervisory toolkits for delivering the mandate of bank supervision thereby contributing to the safety and soundness of the insured institutions.
The Conference provides an opportunity for supervisors and operators as well as other stakeholders to brainstorm on topical issues that continued to shape the nation’s financial industry. The communiqué issued at the previous Conferences continued to be a reference point for innovative ideas. I have no doubt that this Conference will be outstanding in terms of quality deliberations.
Distinguished participants, ladies and gentlemen, you will agree with me that radical reforms had taken place in the banking industry since the last Examiners’ Conference in 2011. One of such reforms is the implementation of the Risk Based Supervision which has led to significant improvement in risk management practices by banks. Supervisory and financial reporting approaches such as Macro Prudential Supervision, Sustainable Banking, IFRS, Basel II / III and Consolidated Supervision have also been substantially implemented in the bid to strengthen the system. Without prejudice to the foregoing, the challenges of Lending in the Nigerian environment, Corporate Governance, Impact of Fixed Income Securities on the Financial Position of Deposit Money Banks, Technological Innovations including Mobile Money Payment and their implication for sustainable banking have remained topical. Equally, there is the need to focus on the challenges faced by the Examiners’ in appraising the affairs of the banks. The future of banking will be more complex in terms of product offerings using the latest from the Information Communication Technology (ICT) arsenal and this provides a compelling reason for the Examiners to be proactive.
For us in NDIC, in addition to the aforementioned challenges, the Corporation continues to face the challenge of debt recovery in terms of the debt owed the closed banks, some of which remain unrecovered since 1994. In view of this challenge being faced by the Corporation, I am happy to inform you that following our request, the CBN had barred all debtors of Closed Banks with non-performing loans of a maximum of N250 million from access to new facilities in any deposit money banks. The banks have been notified of this development and I therefore wish to rely on you as NDIC examiners to ensure compliance with this new directive. The names of the debtors will be populated through the CBN’s Credit Risk Management System (CRMS) and approved private sector credit bureaus.
Finally, I look forward to a communiqué at the end of the Conference proceedings with reasoned recommendations to assist the Corporation in discharging its onerous mandate in this rapidly changing operating environment.
It is now my singular honour and privilege to declare the 2014 Bank Examiners’ Conference open while wishing you happy deliberations.
I thank you for your attention
Umaru Ibrahim, mni, FCIB